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#cfa-level-1 #reading-25-understanding-income-statement #revenue-recognition
Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used.
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3.2.1. Long-Term Contracts
ing with the periods in which work is performed, the percentage-of-completion method is the preferred method of revenue recognition for long-term contracts and is required when the outcome can be measured reliably under both IFRS and US GAAP. <span>Under both IFRS and US GAAP, if a loss is expected on the contract, the loss is reported immediately, not upon completion of the contract, regardless of the method used (e.g., percentage-of-completion or completed contract). <span><body><html>


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